What Is a Reverse 1031 Exchange?
A reverse 1031 exchange is when the investor selects and buys the new property before selling the current property. After beginning a reverse 1031 exchange, the exchanger has 180 days to sell the current property and complete the purchase of the new property.
The reverse 1031 exchange is similar to a delayed 1031 exchange but takes place in the opposite order as the delayed exchange. The property owner typically first finds a new, replacement property. At that point, the property owner begins the process of purchasing that new property and must select a current property to sell in order to pay the purchase price of the new property.
- What Is a 1031 Exchange?
- How Do I Complete a 1031 Exchange Application?
- How Do I Choose a Qualified Intermediary for a 1031 Exchange?
- What Type of Property Can I Swap in a 1031 Exchange?
- What Are Some Advantages Provided by a 1031 Exchange?
- What Is the Timeline for a 1031 Exchange Application?
- How Can I Use a 1031 Exchange to Stop Managing Property?
- How Can I Take Advantage of a 1031 Exchange?
- How Long Do I Have to Complete a 1031 Exchange?
- What Is "Like-Kind" Property in a 1031 Exchange?
- What Is the "Boot" in a 1031 exchange?
- How Do I Fully Defer the Tax on the Sale of My Property through a 1031 Exchange?
- What Is a Delayed 1031 Exchange?
- Do I Need an Intermediary for a 1031 Exchange?